IBR, or Income Based Repayment, is a new take on student loan repayment. In July of 2009, the program was initiated to help student borrowers having trouble recovering from their student loan debt. Massive monthly repayments can actually prevent college grads from succeeding in their careers and in their lives due to stress, overwork and the simple inability to support themselves or a family. IBR is designed to take real life into account and help students establish a payment plan that works with their income and their lives.

At first glance, pretty much everyone would probably be interested in IBR. After all, cutting monthly payments is a good thing, right? However, IBR will not be right for everyone. In fact, not everyone will even be eligible. Here are a few things to think about when deciding if IBR is right for you:

1. Do you have a full-time job?
The IBR program considers full-time to be an annual average of 30 hours per week or whatever your employer considers to be full time. You must meet the amount that is the greater of the two. You can work two jobs to meet this requirement, but if you stop then you jeopardize your eligibility for IBR and for the associated loan forgiveness program.

2. Are you ready to be organized?
IBR reevaluates participants every year. This means you will have to keep track of your income and your working hours. Everything must be documented. If you do not work in a job that will enable you to track your income or pay conventional taxes, you may not be able to work within the IBR program.

3. Are you in default on your loans, and can you get out?
You must not be in default on any IBR-eligible loans (FFEL and Direct Loans). If you cannot get out of default on your loans, then you will not be able to participate in the IBR program. You will need to investigate other options for dealing with your debt. However, before you give up contact the lenders. They may be willing to work with you in order to get a viable repayment plan in position rather than taking the entire loan as a potential loss.